World's Largest Companies in 2009, Fortune 500 Top 10

Fortune Magazine has just released its Fortune 500 list, the world's largest companies. The economic crisis has produced signifcant chnages. Out of the top 10, 7 are oil producers (Shell, Exxon, BP, Chevron, COP, Total, SinoPec), one is a financial (ING), one a retailer (WMT), and one an auto mfg. (Toyota).

Top 10:

1 - Royal Dutch Shell: Oil; US$ 458B
2 - Exxon Mobil: Oil; US$ 442B
3 - Wal-Mart: Retailer; US$ 405B
4 - BP: Oil; US$ 367B
5 - Chevron: Oil; US$ 263B
6 - Total: Oil; US$ 234B
7 - ConocoPhillips: Oil; US$ 230B
8 - ING: Financial; US$ 226B
9 - Sinopec: Oil; US$ 207B
10 - Toyota Motors: Automobile

The New World Currencies: Trade in Local Currencies not USD

Brian Parkin in Berlin reports on the current world currencies discussions on Bloomberg today.

He says that world leaders have agreed to avoid devaluing their own currencies (in order to gain an advantage by making their exports cheaper). Such a move move trigger retaliatory moves and cause further chaos in the current currencies issues.

The root cause of the current currency issues is the US and other G7 countries' use of the printing presses to issue new debt, debt which I have opined will never be repaid.

"With officials from Brazil, India, China and Russia pushing consideration of alternatives to the dollar as the world’s dominant reserve currency, the draft called for a “stable” monetary system, according to a German official who read the language to reporters today. [...] They also agreed to “promote a stable and well-functioning international monetary system.”

The BRIC countries have been talking about a new world reserve currency to replace the dollar. However, they know that is avery long term proposition, and it won't happen overnight. Brazil’s President is advocating wants that the BRIC use their own currencies in settling trade accounts (as reported in trades with China earlier in the year).

This is only part of the problem, a really big problem. I believe the BRIC nations will eventually indeed stop using the USD as their main exchange currency because the risks on the USD are too big. The world clearly needs a stable currency exchange mechanism. Gold's global reserves are to small (see post). The US debt will cause a sudden devaluation of the USD (by the way, causing pain to all those holding or parking their money in money markets). Switching to other currencies is only logical. A "New USD" will be eventually born.

Remember that such stranger things have happened in recent months.

UNG and UCO July Straddles: ROI of +40% and +46%

Here is an update on the UNG and UCO July straddles, with prices as of 2:50PM. Current ROIs are +40% and +46%:

S&P500: Near Oversold, but not Quite: 4/183 OB/OS, P/E Average of 42.0

Here is the S&P500 RSI7 Overbought/Oversold report. The average RSI7 of the S&P500 companies is 35.57, still not in fuly oversold conditions.


Overbought companies:

GIS 79.11
DF 75.90
K 72.90
DVA 70.07


Oversold companies:

HOG 29.81
LEG 29.71
MET 29.68
FPL 29.68
VMC 29.67
CA 29.67
HD 29.62
CSX 29.52
IPG 29.49
PBI 29.44
AIV 29.25
WYN 29.11
MUR 29.07
ADBE 28.96
VAR 28.95
RHI 28.94
WY 28.93
BRCM 28.92
ITT 28.91
UTX 28.85
RL 28.85
EQR 28.84
RTN 28.82
IWM 28.75
GT 28.70
SYY 28.67
WMI 28.67
CTXS 28.66
TXT 28.59
MON 28.53
CVG 28.47
MOLX 28.26
ABC 28.07
FII 28.01
SWY 27.97
APD 27.93
UNM 27.88
MS 27.87
NTAP 27.75
XLNX 27.69
TWX 27.61
COH 27.43
DIA 27.42
CTAS 27.33
AIZ 27.33
NOC 27.19
CMCSA 27.16
TLAB 27.09
BIIB 27.04
TROW 27.01
KBH 26.96
MI 26.95
SBUX 26.93
PAYX 26.92
YHOO 26.90
HAS 26.89
EMN 26.84
SPY 26.81
AYE 26.78
ISRG 26.67
ZION 26.67
XOM 26.66
FLR 26.64
MYL 26.60
AMZN 26.43
NVDA 26.36
OXY 26.30
BJS 26.26
DOW 26.25
AMD 26.20
NBR 26.08
GD 26.08
HBAN 26.07
FDO 26.05
EXPE 26.00
TRV 25.86
TGT 25.84
NYX 25.82
X 25.81
DOV 25.75
GOOG 25.69
BBY 25.69
MRO 25.44
JEC 25.41
NYT 25.37
BEN 25.35
FCX 25.35
IGT 25.25
DO 25.12
EBAY 25.01
EMR 24.99
ICE 24.94
CRM 24.93
R 24.88
PX 24.70
ETN 24.52
BIG 24.50
DHR 24.45
CAM 24.40
ZMH 24.38
MBI 24.35
COG 24.19
MDP 23.84
GLW 23.76
USO 23.70
HES 23.57
PXD 23.56
BNI 23.47
EQT 23.35
NDAQ 23.35
GCI 23.29
SPLS 23.21
ALTR 23.14
COP 23.11
WFMI 23.07
WMB 22.98
ESV 22.81
PH 22.75
NBL 22.63
MAS 22.63
MTW 22.53
MEE 22.47
APC 22.44
EP 22.27
BTU 22.24
NSM 22.20
CPWR 21.99
CIEN 21.93
CVX 21.92
STR 21.57
XRX 21.48
TSO 21.34
ADP 21.25
DE 21.20
HOT 21.15
LUK 21.14
HON 21.14
MAR 21.09
GME 21.00
SLB 20.87
MWW 20.84
NUE 20.81
BDK 20.76
DHI 20.32
ANF 20.22
SUN 19.99
RDC 19.67
JDSU 19.63
FAST 19.54
COL 19.50
TIE 19.50
MMC 19.43
PCP 19.24
DNR 19.13
FLIR 19.06
CAT 19.01
CNX 19.00
IBM 18.97
BMC 18.92
SWN 18.58
UNG 18.57
BHI 18.27
NOV 18.21
SII 18.09
RRD 18.00
BA 17.54
WFR 17.25
GE 17.16
CME 17.14
LLL 17.01
SVU 16.10
CBS 15.69
CHK 15.67
HAL 15.54
SWK 15.28
EOG 14.83
APA 14.22
XTO 14.12
DVN 14.08
FLS 11.62
RRC 11.22
ADSK 11.22
SNA 10.97
C 10.21

P/E Ratios

The current average PE of the S&P500 as reported by Google is 42.0, and that is only if you count the companies with positive earnings, which is only 182 of them! http://nexalogic.com/sp500.html (click on sorted July 7)

Goldman Sachs: Stolen Code Can Be Used to Manipulate Markets!

Bloomberg reports this bomb today:

"The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways”

Well, excuse us if only GS is allowed to manipulate the markets. We are sure it is only in "fair" ways then.


"July 7 (Bloomberg) -- Goldman Sachs Group Inc. may lose its investment in a proprietary trading code and millions of dollars from increased competition if software allegedly stolen by a former employee gets into the wrong hands, a prosecutor said.
Sergey Aleynikov, a 39-year-old ex-Goldman Sachs computer programmer, was arrested July 3 after arriving at Liberty International Airport in Newark, New Jersey, U.S. officials said. Aleynikov, a citizen of America and Russia who joined the bank in 2007, is charged in a criminal complaint with stealing the trading software. Teza Technologies LLC, a Chicago-based firm co-founded by a former Citadel Investment Group LLC trader, said it suspended Aleynikov, who started there on July 2.
At a court appearance July 4 in Manhattan, Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft -- the largest breach ever at the bank -- poses a risk to U.S. markets. Aleynikov transferred the code, worth millions of dollars, to a computer server in Germany, and others may have had access to it, Facciponti said, adding that New York-based Goldman Sachs may be harmed if the software is disseminated.
“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public yesterday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”


Are the SEC and the police investigating how GS uses this code?

Natural Gas and UNG are Caput: Exit Shorts; Next is Hurricanes

On June 22 we posted a straddle on UNG . It is currently returning 34%:




UNG is now again badly breaking down and reaching an all-time low:

Note the very high volume as mom & pop investors and traders are sucked into buying UNG (in spite of our numerous warnings!). Today I exited short positions on natural gas.

There are still no immediate compelling reasons to go long on natural gas, particularly on something like UNG which suffers from contango and contract rollovers. Stay away! However, we exited our shorts as the profits were simply too big to ignore. The trade is done.

We will be looking later in July at establishing long positions, which are strictly weather plays (hurricane season).

Financial Times: Brazil Dancing Through the Crisis: Stable, Mature, and Growing

Yesterday we posted a note discussing the record high sales of new vehicles in Brazil so far this year. Coincidentally, today the Financial Times of London has an article on Brazil: "Dancing Through the Economic Crisis". The article discusses what we said yesterday and expands on the Brazilian economy in general:

"It is a mature democracy with a diversified economy, a young, adaptable population revelling in increasingly stable employment and rising incomes. It is also a rising power in food and industrial commodities, a big future exporter of oil and home to the world’s fourth biggest derivatives and equities exchange."

"The country has been following broadly the same economic policies for the past 15 years, under one centre-right and one left-wing administration. [...] Brazil, unlike Russia, India and China, with which it is constantly compared as a member of the Bric group of big emerging nations, is not only a mature, stable and diversified economy but also one largely unthreatened by social, demographic or economic upheavals."

"... Brazil’s huge domestic market of 190m people, a market capable of supporting not only distinct brands but also entire industries. Take the “flex-fuel” car. More than 90 per cent of new cars sold in Brazil have “flex” engines, capable of running on gasoline or ethanol or any mixture of the two. This means motorists running on gasoline or ethanol or any mixture of the two. This means motorists can decide at the pump which fuel to buy, depending on price. Flex-fuel cars have helped Brazil become the world’s sixth biggest auto producer but they are made almost entirely for Brazilians."

"And the global crisis? It hit the auto industry hard, because sales depend on credit and credit disappeared from Brazil last year as it did from the rest of the world. But the government pumped liquidity into the economy by releasing R$100bn from banks’ reserve requirements – the share of their deposits they must park at the central bank – and temporarily removed vehicle sales taxes."

Green Shoots

"...But if talk of green shoots makes sense anywhere in the world it is in Brazil, an emerging world leader in farming, mining, oil, even investment banking, and with a home market its rivals can only dream of."

Brazil's Vehicle Sales Hit Record High During January-June 2009

Results clearly show the strength of the internal market.

The Brazilian Association of Vehicle Producers reported today that Brazilian vehicle sales hit 300,157 unit in June 2009, 17.2% higher than June 2008, bringing the total of Jan-June 2009 to 1,449,787 units, 3% higher than in 2008.

Flex fuel vehicles sales totalled 1,230,994 units, or 88,3% of the total.

From January to June vehicle production was 1,463,707 units, which is 13.6% lower than last year. Exports were US$ 0.61B in June, an increase of 1.5% compared to May, but a decline of 52.7% compared to 2008.

Exports for Jan-June 2009 were $3.3B, 51% less than last year.

Automobile sector employment was 119,511, a drop of 0.7% compared to May, and 5.6% with June 2009.

Clearly, the internal market more than compensated for the drop in the external market. Government incentives seemed to have been quite effective.

As we stated eqrlier, a safer place to invest is not in treasuries or money markets, it is in econonies that are growing. North american economies will not grow for many years to come. Their debts cannot be repaid unless (their currencies are devalued).

Goldman Sachs Algorithmic Trading Theft: Programmer's Bail Set at $750,000.00

Reuters reports that Sergey Aleynikov, the Goldman Sachs computer programmer who alledgedly stole secret trading algorithms and software from the bank was being held in federal custody on Monday, pending the posting of $750,000.00 bail.
The bond also includes $75,000 in cash. Mr. Aleynikov was ordered to surrender his passport. Aleynikov is a Russian immigrant living in New Jersey.

Authorities claim that Aleynikov copied proprietary computer code and then uploaded it to a server in Germany.

The case is extremely interesting as the markets have risen recently but trading volumes have continue to drop. With low columes, algorithmic, or computer trading now constitutes a good chunk of all trading (possible majority), and Goldman Sachs is responsible to the majority of this algoritmic trading. In other words, it is possible that Goldman Sachs controls the markets and can make them go up or down at will.

The bizarre behavior of the markets lately, at a time when financial institutions were desperate to raise funds and keep their shares and the markets up, might well be explained by Goldman Sachs computer trading.

Investors and technical analysis traders would like nothing more than the return of some trading normalcy, and for these computer trades to disappear.

We want full disclosure!

15 for Federer, No Economic Crisis in Wimbledon

Roger Federer won his 15th Grand Slam title yesterday at Wimbledon, becoming the most successful tenis player in history.

The economic crisis seems to have bypassed Wimbledon altogether:

- 33,000 additional spectators than last year

- 46,826 spectators on Wednesday, a record.

- tickets for Sunday's final were being sold for 2,000 Euros by scalpers.

- 17,000Kg of strawberries were sold the first week, plus 12,000 champagne bottles

S&P500 Complete List of Overbought and Oversold Companies July 3

At the end of this week, we have 8 overbought companies and 90 oversold companies. The average RSI7 of the S&P500 companies is 40.11, which is neither oversold nor overbought.

Overbought (RSI7 shown im brackets):


GIS 80.88
AIG 78.13
BLL 75.57
PEP 75.35
BAX 74.48
DF 74.43
MTB 72.00
HRB 70.33

Oversold:

IPG 29.88
BBT 29.85
STR 29.84
WU 29.80
UNM 29.78
PAYX 29.75
LUK 29.68
EBAY 29.61
TWC 29.58
CVX 29.39
UTX 29.33
TGT 29.33
CME 29.28
DOW 29.00
FAST 28.94
SYK 28.82
CTL 28.80
BJS 28.78
MET 28.45
FHN 28.38
COST 28.37
PNC 28.32
NSM 28.18
MI 28.12
EQR 28.04
BIIB 27.95
HOT 27.89
RRD 27.53
S 27.41
FII 27.29
ESV 27.29
FDO 27.27
ADP 27.25
NUE 27.19
ZMH 27.08
JDSU 26.93
COL 26.91
APC 26.90
DNR 26.89
MMC 26.79
CBS 26.78
SHW 26.71
MAR 26.52
SPLS 26.43
VFC 26.42
GME 26.32
TMK 26.23
CAT 25.98
ZION 25.97
SII 25.50
GCI 25.41
FLIR 25.36
VRSN 25.35
HES 25.16
MDP 24.84
BHI 24.72
GE 24.69
IBM 24.26
DO 24.21
KSS 24.14
WAG 23.95
ANF 23.89
NOV 23.79
CNX 23.71
BA 23.46
SYY 23.36
AVB 23.11
RDC 23.08
EOG 22.44
SWN 22.36
CHK 22.24
SWK 22.01
ABC 20.65
XTO 20.63
FLS 20.47
SWY 20.35
MON 19.77
SNI 19.73
HAL 19.70
LLL 19.67
APA 19.44
MBI 19.43
RRC 19.09
DVN 18.89
PCP 18.30
SNA 18.22
C 17.47
SVU 16.47
TRV 16.04
CIT 15.22
ADSK 11.68

The lower the RSI7, the more oversold the company is. We use thresholds of 30 and 70 to indicate oversold and oversold conditions. They are arbitrary, but provide a good indication of the current market conditions.

RSI14

In terms of a longer term RSI14, we have 2 overbought companies (RSI14 shown in brackets):

AIG 78.82
GIS 72.93


We also have 7 oversold companies:

CIT 29.43
MON 29.33
MBI 28.80
LLL 28.78
ADSK 27.22
SVU 25.15
ABC 19.75

Natural Gas Report July 2nd: Short Term Bounce But We Remain Bearish

Natural gas inventories were reported today, showing a drawdown of 70Bcf.

Here is the chart comparing 2008 and 2009 inventories:
As you can see, we are still well above the top of the 5-year average channel.

This week's report is actually short term bullish, so we expect a bounce, but we remain short until late July, or early August. Incidentally, UNG is trading very near it's all-time low:

UPDATE 3:40PM

Please see the UNG chart for today:



There was the bounce at 10:30AM, and it was all downhill from there. UNG is indeed reaching its all time low now:




The 3 month chart clearly shows the low:

Dollar Suffers Biggest Loss Since 1999 vs Real.

In Q2 2009 the US dolar suffer its biggest quarterly loss since 1999 versus the Brazilian Real. On May 1st of this year the exchange rate was 2.29 (1 USD = 2.29 Real). On June 30, the same exchange rate was 1.95. Yesterday the dollar fell further to 1.93.

The following chart shows the quarterly performance of the USD versus the Brazilian Real since 1999.

(Please click to enlarge)


The Brazilian Real is rising due in great part to the strength of Brazilian exports and increases on prices of commodities which have caused the Brazilian trade surplus to increase. In June the surplus was USD $4.6B.

Why this matters to US investors? Because the huge US debt may never be repaid. The only way to take care of the debt is to devalue the currency, either through inflation, or by a change of currency. Cash and money markets may not be safe. The safest investments are on growing and stable economies with strong surplusses and rising currencies, not under the mattress. This is extremely important and will be the subject of future posts.

Happy Canada Day

A Very Happy Canada Day!

Here are some pictures and videos that I took today July 1st 2009, of the big party in Ottawa:

The Snowbirds flew by several times:





Night Fireworks:

Zenn Electric Car, Supercapacitors in Action (Videos)

We have commented on a couple of occasions about Zenn Motor Company. This Canadian company is attracting great attention because of their use of supercapacitors to power their new electric cars.

My son, who just turned 10, did an experiment of capacitors vs supercapacitors. He charged both a capacitor and a supercapacitor and used them to power a little motor coupled to a plastic rotor. The results are astounding. Please see the videos below.

Initially, both capacitors are charged for about 5 seconds by the power source (a battery), then the power source is removed. Now the rotor is spinning powered by the energy stored in he capacitor only.

Capacitor:

Supercapacitor:

The capacitor was 2,200uF. The supercapacitor, much smaller, as can be seen on the video, was rated 6F!

With the capacitor, the rotors spins for less than 1 second fater the battery is removed. With the supercapacitor, the rotors spins for over 12 seconds.

Zenn trades under the symbol ZNN on the TSXv.

Disclaimer: I have no position on Zenn. I would just like to buy their cars in Canada, which we are not allowed to do.

World's Largest IPO This Year: Bradesco and BB to Profit USD$1.7B With VisaNet

VisaNet's IPO was the biggest in the world so far this year. It did not happen in New York or London. It happened in Brazil's Bovespa.

Bradesco (BBD on the NYSE) and Banco do Brasil will register a profit of R$3.4B in Q2 2009 (USD $1.7B) due to their sale of the Visanet IPO in the Bovespa (Sao Paulo Stock Exchange).

Bradesco will report R$2B for the sale of 10.5% of the shares, and will still keep 28.7% of VisaNet.

As we reported earlier, Bovespa is now the 4th largest stock exchange in the world in terms of market cap.

BBD chart:

S&P500 Top 10 Companies to Short for June30

Here is the S&P500 oversold/overbought report for June 30. Today we are back into overbought territory in terms of the number of overbought versus number of oversold companies. We have 44 overbought companies and only 11 oversold. The average RSI7 is 54.43, which is neither oversold nor overbought.

The top 10 overbought companies are (number indicates RSI7):

WPI 83.83
WAT 82.97
BSX 82.05
SJM 81.62
CELG 80.79
DTV 79.75
HSP 79.67
BDX 79.21
SO 79.00

List of overbought companies:



(please click to enlarge)

List of oversold companies:




Here are the RSIs of the ETFs we follow. They are in pretty much in no man's land.

Federal Express July and August Straddles

Australian Colin Twiggs writes today about Fedex (FDX)



Twiggs says: " FDX failed to follow-through below $50 (after breaking support at $52), rallying strongly to test the upper border of a gently descending trend channel. Twiggs Money Flow (21-Day), however, continues to warn of selling pressure; and breakout below the channel would signal a test of primary support at $34. Upward breakout is now as likely and would indicate a primary advance with a target of $90; calculated as 62 + ( 62 - 34 ). "

With targets of either $34 or $90, this is another opportunity for straddles, where an investor profits with price movements either way.

A July 60 call sell for $0.50
A July 50 put sells for $0.50

Maximum move required for profit: 11.5%

August 60 call sells for $1.55
August 50 put sells for $1.50

Maximum move required for profit: 15.2%

Interest Rates Will Reverse: Stunning Treasury Yield Curve Chart

Chart From Yahoo:




Rates will not stay this low forever. Rates will go up, that much is a certainty. The exact timing is in the only uncertainty. The question is what is the best way to profit from the future rise in rates. A investor who has years to wait has a definite opportunity here.

Buying options is not a sure bet as there is timing involved. Shorting TLT is an attractive idea. Selling long term options is another one (for those who can write options). TBT is not a good idea for the long term as it is a 2X ETF (we have posted repeatedly here warning against leveraged ETFs).

As usual, it all depends on the investor's timeframe.

Wheat Prices to Soar: Ug99 Fungus Spreading All Over the World

Ug99 is a destructive fungus that threatens to wipe out 80% of the world's wheat crop. Scientists in Canada and around the world are trying to develop resistant wheat strains resistant to this fungus that has spread from Africa to Iran and is likely to show up soon in India and Pakistan, and from there to the rest of the world.

The stem, black or cereal rusts are caused by the fungus Puccinia graminis.





Destruction of wheat crops threatens to cause widespread famine. It may also cause a very large increase in the prices of staples such as bread and pasta.

The Ug99 fungus, also known as stem rust, is likely to spread worldwide, either through wind-blown spores or carried by people. "It's a time bomb," Jim Peterson, an expert on wheat genetics at Oregon State University in Corvallis, told the Los Angeles Times. "It moves in the air, it can move in clothing on an airplane. We know it's going to be here. It's a matter of how long it's going to take."

"I think it is important people start recognizing what a big threat this is. This could mean world famine. This is quite the deal", said Rob Graf, a research scientist with the Agri-Food Canada's Research Center in Lethbridge, Alberta.

The UN also says Ug99 is a major threat to world food security.

Stem rust is a long time foe of wheat farmers and afflicted wheat's wild ancestors before that. The most recent outbreak in the US was in 1962 when over 5% of the crop was killed.

Resistant strains of wheat apparently overcame the problem. But a new strain appeared in Uganda in 1999 and began spreading from there. Ug99 is a strain of black stem rust. It is virulent to the great majority of wheat varieties. Unlike other rusts, which only partially affect crop yields, UG99 can bring 100% crop loss. Up to 80% yield losses were recently recorded in Kenya.


Investment

Prices

Wheat trades on the Chicago Board of Trade (CBOT), under symbol W. Current prices:

Where wheat is produced (courtesy wikinvest):


(click to enlarge)

From an investment point of view, a couple of companies and ETFs that I follow that are are directly related to wheat are:

DBA

This ETF tracks the price and yield performance of the Deutsche Bank Liquid Commodity Index - Optimum Yield Agriculture Excess Return. The index is a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities: corn, wheat, soy beans and sugar.

DBA is currently close to oversold, with ab RSI7 is 38.8 and RSI14 is 43.0.

Viterra

Formerly Saskatchewan Wheat Pool. The Company is organized into five segments: Grain Handling and Marketing, Agri-products, Agri-food Processing, Livestock Feed and Services, and Financial Products. The Grain Handling and Marketing segment is engaged in the collection of grain, shipping to inland or port terminals, cleaning of grain to meet regulatory specifications, and sales to domestic or export markets. The Agri-products segment includes an ownership interest in a fertilizer manufacturer and ownership of a fertilizer distributor. The Agri-food Processing segment includes the manufacture and marketing of products associated with oats and malt barley for domestic and export markets. The Livestock Feed and Services segment formulates and manufactures feed products.

VT.to's RSI7 is 49.1

Companies that will suffer from high wheat prices:

Being a global commodity, wheat is used for many foods, bread and pasta in the West countries and noodles in Asia. If the commodity prices increase, the usual consequence is that food producing companies are faced with a dilemma of lowering margins or passing on cost increases to the consumer. If the latter occurs, demand is destroyed. Bottom line is that company profits will suffer.

Sara Lee (SLE) and Campbell Soup (CPB) are both producers of baked goods, especially bread.

Kellogg (K), General Mills (GIS), Kraft Foods (KFT), PepsiCo's (PEP) Quaker Foods, and Nestle (VTX:NESN) are all major producers of breakfast cereals, most of which are made partly from wheat.

Kraft Foods and PepsiCo's Frito-Lay are the largest multinational snack companies. Many of the products manufactured by these companies, including corn chips, cookies, and crackers, are made primarily of grain products.

More to come.